SJC Reaffirms Mandatory Cy Pres Notice to IOLTA Committee in Class Actions
Interest on Lawyers’ Trust Accounts, or "IOLTA", is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. The pooled interest on IOLTA accounts makes improvements to the administration of justice and supports the delivery of legal services to low-income clients. The IOLTA Committee uses the interest earned on IOLTA accounts to support civil legal aid and projects to improve the administration of justice across Massachusetts.
Interest on Lawyers’ Trust Accounts, or "IOLTA", is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. The pooled interest on IOLTA accounts makes improvements to the administration of justice and supports the delivery of legal services to low-income clients. The IOLTA Committee uses the interest earned on IOLTA accounts to support civil legal aid and projects to improve the administration of justice across Massachusetts.
FOR ATTORNEYS
FOR FINANCIAL INSTITUTIONS
WHERE DOES THE MONEY GO?
ELIGIBLE INSTITUTIONS
Pursuant to a July 26, 2006 order of the Supreme Judicial Court, financial institutions must be certified by the IOLTA Committee to be eligible to hold IOLTA funds. Additional changes in the operation of IOLTA accounts were adopted in December, 2008.
Effective September 1, 2024, eligible institutions must meet additional requirements related to inactive IOLTA accounts.
Please visit our List of Approved IOLTA Depositories to insure your accounts are maintained at an eligible institution.
As of January 1, 2026:
- The Leadership Bank interest rate is 2.81%
- The Safe Harbor interest rate is 2.06%